Ekati diamond mine's process plant repairs to cost $25M
Mining activities suspended at 2 pits, company focusing on high value ore for when plant restarts
The cost of repairing Ekati diamond mine's process plant following a fire last month is estimated at $25 million, according to a news release today from Dominion Diamond Corporation.
The company says the estimate is preliminary and may change as the repair activities progress, and that it is working with its insurance claims adjusters.
The release said that temporary layoffs of about three months would affect about 330 temporary and permanent contractors, and employees.
Mining activities have been suspended at the Pigeon and Lynx pits but are continuing at the Misery open pit and Koala underground. It said the Misery and Koala material will be stockpiled with the intention of processing a blend of high value Misery Main and Koala ore when the process plant restarts.
In the release, CEO Brendan Bell said this would help minimize the impact of the fire on the value of Ekati's fiscal year production.
Non-essential capital projects, including mobile equipment rebuilds and the expansion of communication and automation systems, have been postponed until the 2018 fiscal year.